How do we expand to a sustainable recovery when the ability of businesses and consumers alike to EXPAND their debt is impaired? Revenues are down, demand for credit is down, rail traffic is down, the BDI is down, job growth doesn't exist....we are 7 MILLION workers down and none of these, and none of those employed are able to draw out monies from increasing home values.
The Chinese market began turning down iN AUG, will that be seen down the road as a warning sign ignored? Or will we keep just laughing it off, and keep following the flow of liquidity whose main objective is to reinflate assets.
D
Subscribe to:
Post Comments (Atom)
3 comments:
I have been reading that October will be a big month for small and medium size companies to declare bankruptcy. The reason is due to taxes due.
I live in Boston; a story hit the front page where the new expected state revenue shortfall is 200 million. The state government already went thru a big round of cuts in early 2009. 200 million is a big number. The governments expectations were clearly incorrect.
I know other states are in much worse trouble.
Look for year end layoffs to kick up again as well. The construction industry which was a engine of groth during the last 10 years is in dire straits.
I think you are correct, though a few of the bigger ones may land some stimulus related projects, you take those away and you don't have much.
The state coffers are being killed by lower taxes, and can only cut budgets so far. This puts even more stress on job front.
There was something to goose in 2003,will someone please tell me what it is now?...besides the stock market.
The DEBT situation has to come clean...its mostly still hiding out...not dealt with.
Just to add to what you said; banks are not foreclosing at the rate they normally would do so. The reason is that they do not want to add those non-performing loans to their already ugly balance sheets.
They, like the government, and many companies are just holding out as long as possible.
They are trapped in a mine field.
Post a Comment